by Sonu Bhasin
One other reason for the Indo-Soviet cooperation was the fact that independent India had been looking to build up a steel industry in the 1950s. Nehru had requested the US for assistance. However, the US had rejected these requests. The Soviet Union saw an opportunity to start building an economic relationship with India. They made an offer for economic cooperation and India gladly accepted. The rupee–rouble trade agreement was an important part of the economic cooperation. By the late 1970s India had a surplus of the Soviet rouble balances as India had bought large defence supplies from the Russians. To counterbalance this excess, exports from India to the Soviet Union started to soar. The Soviet demand for agricultural raw materials like cashew and mangoes, and for consumer goods ranging from soaps and detergents to textiles and shoe uppers seemed insatiable. In fact, an entire mini-economy sprung up within India to cater to the Soviet Union. The Indian trade surplus with the Soviet Union was nearly US $500 million by 1983; this grew to US $700 million by 1986.
Thirty-two
‘Russia Became the Favourite Child; Rajdoot Paints Became the Neglected One’
It is often said that hard work alone is not enough for success. There needs to be dollops of luck as well.
Kuldip did not shy away from hard work but it was Lady Luck that ensured that he was at the right place at the right time. Business with the Soviet Union had been Kuldip’s father Niranjan Singh’s dream, but he died an untimely death just days before he was to leave for Moscow to explore business opportunities. Almost twenty-five years later, it was as if he was orchestrating the happenings and guiding his son, Kuldip, to fulfil his unrealized dreams.
As the orders for export started growing so did the file that the state authorities must have kept on Kuldip. ‘There were always two people who would meet me at the trade office initially,’ said Kuldip. ‘One of them knew his stuff about the paints and other things. The other one used to just sit silently, listening and taking notes. I think that the second one was part of the state authority who kept his eye on the kind of people they dealt with,’ he continued. While Kuldip was quite matter of fact about the state authority being part of the discussion, I sat up surprised.
‘State authorities to watch out for trouble elements?’ I asked arching my eyebrows.
‘Yes, I am quite sure,’ Kuldip answered. ‘They wanted to know who they were dealing with,’ he continued.
The Soviet Union was at the height of the Cold War with the United States. In fact, this cold war had come to the Summer Olympics in Moscow in 1980. The US led the way in a mass boycott of the Moscow Games. In these heightened tensions the Russians wanted to know if they were working with ‘friends of the Soviet Union’ or otherwise.
Kuldip had been to countries behind the Iron Curtain as part of his hitch-hiking holiday. He shared his experience with the Russians during the various conversations they had had over many meetings. Further, his refusal to take direct orders while he was working through Jyoti Impex had surely also made its way into the file.
‘Not many people had refused to take direct orders from the Russians. In fact, I think I must have been the only one,’ said Kuldip. The Russians took note of this and had ticked off ‘loyal to associates’ and ‘honest in his dealings’ in his file. ‘Once I had been given the clearance by the topmost authorities concerned, there was no looking back for me,’ he said.
The Russians saw Kuldip as a person they liked to do business with. He was different from the many other Indian exporters they had met. The rupee–rouble trade agreement led to a requirement of millions of dollars’ worth of exports out of India into the Soviet Union. But the Russians found that matters of quality and schedule could not be managed from Moscow. The Indians usually asked for either more time or more money. Kuldip did neither! Even at 70 per cent of all their requirement, Kuldip was able to supply quality paint on time and wanted more business. The officers of Sojuzchimexport appreciated this and, like any other office colleagues, shared their experiences about their suppliers with each other.
In particular the Sojuzchimexport officers shared the wonderful time they had in India, courtesy of Kuldip. It was not unusual to find ten to twelve Russians at the Dhingra farmhouse in Delhi spending their day lounging in the garden or in the pool, taking occasional trips to the buffet table set up in the dining room.
‘I remember that Mom was very busy with all the parties for Papa’s people from the Soviet Union. We kids got to know most of them,’ said Rishma, Kuldip and Meeta’s eldest daughter.
‘It is because of Meeta that Kuldip was able to do so much of business with the Russians. She was a wonderful hostess and took care of everything at home,’ said Brinder Singh, a family friend of the Dhingras.
The parties at home also ensured that none of the other exporters would be able to sidle up to the Russians to ask for business. ‘I ensured a totally controlled environment in India,’ laughed Kuldip.
The visits to India were also a kind of R&R (rest and recreation) time for the visiting officers. Their favourite places were Goa and Kerala as the Russians loved the sun and the beaches of both the areas. Kuldip, however, would take his visitors to even more exotic places. ‘I would charter planes and take them to Goa, Kerala and the Maldives,’ said Kuldip. He made sure that there were valid official and business reasons for them to accept such trips.
His decision to go the charter route was made when he was travelling with Russian delegates to Goa on an Indian Airlines flight. ‘I saw another exporter also on the flight. He managed to get a seat next to Mr Tsygankov and they talked through the flight,’ said Kuldip. ‘I did not like it at all. Maine paise kharch ke ticket li hai Tsygankov ke liye aur [I have spent the money on the ticket for Tsygankov and] that exporter spends the whole two hours talking with my guest? This had to be stopped.’
Kuldip’s solution: Stop going commercial and start chartering flights! The chartered planes meant that there would be no other exporters in the plane and the exotic, expensive places ensured isolation. It was a win-win situation for both parties—the Russians and Kuldip!
As his reputation spread among the Sojuzchimexport officers, Kuldip started getting inquiries about a variety of products. ‘One day I was asked if I could supply raw materials for paints and then a week later I was asked if I could supply textile dyes,’ he said. At the time of the first such inquiry Kuldip had asked in bewilderment, ‘But I am a paints producer. How can I give you textile dyes?’
‘Textile dyes are also a kind of paint, is it not?’ came the reply.
‘In a way they were right, you know,’ said Kuldip.
‘The Russians told me that it did not matter if I produced them myself or not. I could source the material from anyone but I had to make sure that the quality, price and the deadlines were maintained,’ he added. Kuldip’s quick business mind went into overdrive as he foresaw the possibility of incremental business. He said yes to the first orders of textile dyes and pigments for paints.
‘Haan tan maine kar ditti [I said yes] but then I had to come back and find suppliers!’ said Kuldip. He talked the matter over with Gurbachan, who handled all factory-related matters. ‘I said to my brother, “What’s the problem? Of course, we can manufacture all this,”’ said Gurbachan with total nonchalance.
Gurbachan had his trusted suppliers for raw materials for Rajdoot Paints. However, the challenge in dealing with them was to keep to the deadlines with uninterrupted deliveries at the required costs. The quantities were large which added to the challenge. Gurbachan decided to work directly with other factory owners for these critical requirements.
Time, it seemed, had come a full circle in less than ten years. UK Paints had started their export business by supplying to Jyoti Impex who in turn were exporters to the Soviet Union. By 1987 it was UK Paints that was sourcing from others for the Soviet Union. ‘Word had got around Sojuzchimexport and some other companies that I had been cleared from the top and that I was dependable,’ explained Kuldip. He also made clear to all the
officers that UK Paints would only source the products for exports. The Russians were fine with it so long as UK Paints took ownership of quality, price and timely delivery.
With Kuldip’s total focus on growing the exports business, the domestic business was run completely by professionals by now. ‘Rajdoot Paints was like the neglected child,’ said Rajkumar, a member of the core team of Rajdoot Paints. ‘KS had limited time and he used all of it for the Soviet Union. We in India were left without much guidance. If he had spent even some more time, Rajdoot could have grown very big. But I understand that he had to focus on the exports,’ rationalized Rajkumar.
Kuldip continued to be unapologetic about shifting focus from domestic to exports. ‘There was no comparison at all. Rajdoot could never have compensated for Russia,’ he said expansively.
Kuldip decided, consciously, to take his focus away from Rajdoot Paints as he saw a better return on his time spent with the export business. He also got Meeta to wind down her furniture and interiors business. ‘Kuldip told me one day that he needed me in the exports business and that I should wind down my own business,’ said Meeta. She was not quite happy at this because she had built her own business from scratch. ‘Plus, I had orders to finish. I had clients to take care of,’ she explained. But Kuldip needed Meeta by his side as a business partner when he visited Moscow and as a hostess when the Russians visited India.
‘I stopped taking new orders and focused on finishing the ones in process. I told all my carpenters, my workers and staff that I was winding down the factory,’ Meeta said. Meeta finished the orders in process and shut down her business and showroom.
It was not only her business that had been taking her time. She was also a mother handling the children almost single-handedly. ‘Kuldip was so busy. He was travelling. He was negotiating. He was going all over. He had no time for the children. I had to take care of him and the children,’ said Meeta.
Rishma was the first one to leave home. She went to Buckingham University in the UK. Jessima was in Aiglon College in Switzerland. ‘I was going completely nuts. Between Delhi, Moscow, Switzerland and then the UK, it was a mad time,’ said Meeta. Kuldip was focused totally on the export business as he now had to manage products beyond just paint. ‘He had no time for the family. He was only working. Moscow, Russians, orders, delivery, that was his life. I did not want to disturb him,’ said Meeta. She made sure that she was there for all her daughters no matter which part of the world they were in. ‘I was there for all school meetings in Switzerland and in the UK. No one had seen Kuldip and some used to wonder about the father of the daughters!’ laughed Meeta.
Meeta used Jessima’s graduation as an occasion to drag Kuldip to Aiglon College in the Swiss Alps. ‘I thought it was time that he visited at least one of the colleges of his daughters,’ said Meeta.
‘Arrey, it is such a beautiful place! Why did you not get me here before?’ was Kuldip’s reaction when he reached Aiglon. Kuldip was so taken in by the peace and tranquillity of the place that he decided he would spend a week there. Meeta and he hired a car and they drove around the area. ‘We had a lovely, but most unexpected, holiday,’ remembered Meeta.
Thirty-three
‘Yeh UK Paints Kithon Aa Gaya Hai Exports Karne?’
‘WHERE HAS THIS UK PAINTS COME FROM?’
With Rajdoot being managed by professionals, Kuldip realized that the exports business also needed some professionals. ‘How much could I do? I had to travel extensively, spend time in Russia, spend time with the Soviet business professionals, entertain them, take them around in India. Gurbachan was handling the factory and some procurement. I needed someone to source suppliers for me,’ said Kuldip.
In the late 1980s, Indian industry needed to export to get import licences. Almost every company, every business, had an export division. The government did not care what was exported, whether it was related to the core business of the company or not. Instead it encouraged and incentivized the exporters for earning foreign exchange for the country. The government wanted companies to show their export business before they were granted import licences. Agro-chemical companies were exporting prawns and scampi around the world; cigarette companies were exporting leather goods; fertilizer companies were exporting ready-made garments. All for those elusive, but important, import licences.
Kuldip and UK Paints were not short of suppliers—companies and people willing to export. It was finding the right suppliers that was the main issue. ‘There was a potential for a lot of ghaplabaazi [bungling] in sourcing and I did not want any of that. I have always done things the right way,’ said Kuldip. To make sure that the procurement work would be done well, Kuldip had to find the right person to work with him.
‘There was this boy, Kailash, who worked in ITC. His father was in Jenson & Nicolson,’ said Kuldip. He liked the young professional and wanted him to leave ITC to come and take charge of the export supplier business. ‘His father got very angry with his son. He asked, “How can you leave a company like ITC to go and work for a small company like UK Paints?’’ said Kuldip with a laugh. But Kuldip had decided that he wanted Kailash and used all his persuasive powers, charming him into leaving ITC. ‘He went against his father’s wishes to join me,’ said a delighted Kuldip.
Kailash took charge of sourcing suppliers across a variety of products. ‘I had inquiries for textile dyes, dyes intermediaries, pigments for paints, soaps, scouring powder, detergents, shampoos, shaving cream, toothpaste, and then motors for sewing machines, compressors for refrigerators, electric panel parts and various types of household chemicals,’ said Kuldip reeling off names of items much like a waiter in an Udupi restaurant! In effect UK Paints had become a kind of buying agency for the Soviet Union. A buying agency, typically, is a body that buys goods on behalf of the foreign buyers. The buying agent represents and buys a specific kind of product within a specific territory, which can be a country or multiple countries.
By 1988, UK Paints was getting orders of 100 per cent of 20,000 tonnes of paints that the Soviets bought from India each year. The company managed to product all the paint itself. ‘However there was more than 50,000 tonnes of household chemicals that had to be exported. I had to find other suppliers,’ said Kuldip.
Gurbachan was not happy at the orders going out. He wanted to manufacture all of it at UK Paints.
‘Why give away business to others? We can do it ourselves,’ he said. But the large factory at Sultanpur soon ran out of space to store even the finished barrels of paints.
‘The finished paint products were exported in 200-litre barrels. We ran out of space inside the storehouse and started piling the barrels out in the open at our farm. We had to get special permission from the excise authorities to store material in the open,’ remembered Gurbachan. Vinu and Meeta too remembered going to the farm one day. ‘It was like a barrel-field! Wherever the eye went, there were barrels and barrels of paint,’ Vinu said.
It was then that Gurbachan understood why Kuldip wanted to source other suppliers for paints. Gurbachan, however, continued to get the factory to produce more and deliver on time. He was putting to good use all that he learned from not only his eldest brother Sohan Singh but also from visiting large paint factories in Europe and the US.
Gurbachan is proud of one mixing tank—the tank in which all ingredients of paints, the pigment, binder and solvent, are mixed together to make the final product—in the Sultanpur factory. ‘Each batch coming out of a mixing tank has a certain quality. To ensure consistency across a large batch a bigger tank is required,’ he explained patiently. He, along with his engineers, made a mixing tank that had a capacity of 70,000 litres. ‘The largest paint company in India at that time, Asian Paints, also did not have a tank as large as that,’ said Gurbachan. While he was not able to convince Kuldip to insource all of household chemicals, he was able to persuade his brother to allow him to set up a small factory to produce detergents and scouring powder!
In Delhi, the crowd of supplier
s wanting to export to the Soviet Union through UK Paints kept growing outside Kuldip’s office. ‘I used to have a line of people waiting to meet me for exports. But I would tell everyone that my staff and Kailash would handle it,’ said Kuldip. He remembered a particular supplier especially.
‘I got a call on behalf of Adi Godrej one day,’ said Kuldip. Adi Godrej wanted to export to Russia and wanted the orders for household chemicals like scouring powder, soaps, shaving cream and toothpaste. Kuldip told Godrej that he would come the next day to meet him at the Godrej office in Asaf Ali Road. ‘I still remember what Godrej told me,’ said Kuldip quietly. Adi Godrej said that UK Paints was the client and Godrej was the supplier and therefore, following protocol, it was Godrej who would come to Kuldip’s office.
‘I thought to myself—he is such a big man but has such good values,’ said Kuldip.
Gurbachan, however, has another memory of the same meeting. ‘Godrej also wanted the order for detergents. We were already making them for export. So we knew the costs,’ said Gurbachan with a delighted laugh. He broke down the costs presented by Godrej, ingredient by ingredient, and got them to agree to a cost which was 30 per cent lower than the initial one. ‘We were used to cost our own products down to the last detail as we brothers had worked at the ground level,’ said Gurbachan.
As one of the de facto representative of the Soviet Union (or so the Indian suppliers assumed) for a variety of products, UK Paints was in much demand in the Indian market. However, there was much heartburn among the manufacturers who were outsourced the products by UK Paints. ‘As for paints, earlier there were export orders given to Jenson & Nicolson, Garware, Asian Paints, British Paints, Modi Paints and others. All of these gradually stopped as all orders were given to me,’ said Kuldip with a chuckle.